Many insurance companies write insurance policies for multiple jurisdictions. Different jurisdictions may have different laws and regulations regarding insurance compliance, and it may be difficult for insurance companies offering products in multiple jurisdictions to consistently make sure that all the compliance guidelines are followed. Also, since some insurance companies also utilize employees and contractors that service multiple jurisdictions, it is difficult for such employees and contractors to determine the types of information that need to be collected when interacting with different claimants from different jurisdictions and the specific service guidelines that may apply. For example, different jurisdictions require a wide variety of questions be answered by claimants during the claims process. The questions vary in both number and substance. With respect to coverage issues, some jurisdictions allow for deductible waivers, but not all do. As another example, different jurisdictions also have different regulations regarding the allowability of repairing vehicles using after market parts. Different jurisdictions also require varying levels of reporting to claimants throughout the claims process. These are just a few of a myriad of examples of the ways in which automobile insurance regulations vary from jurisdiction to jurisdiction.
Adding to the challenge of providing consistent service from a limited number of service personnel, most insurance companies offer a variety of insurance policies, even covering the same perils. For example, an insurer may offer several automobile policies, some of which might offer rental car coverage while others do not. Some policies require an insured to use a predetermined set of repair service providers. Other policies provide customers more flexibility. Thus, to effectively service claims, insurance customer service personnel and claims handlers need to have ready access to the provisions of each claimant's policy in addition to the various jurisdictional guidelines.
Moreover, it may be difficult for insurance companies to consolidate claims information to determine exactly what information has been collected and what information is needed to comply with insurance guidelines.